EUR/USD, USD Mixed as Markets Await NFP Amid US-Iran Tensions

European markets closed with a mixed tone on Friday as traders positioned ahead of the highly anticipated US Nonfarm Payrolls report, while escalating US-Iran tensions added a layer of geopolitical uncertainty. An explosion halted crude loading at Oman's Mina al Fahal port, intensifying conflict fears, while reports indicated the US continues to refuse Iran's request to unfreeze frozen funds. The semiconductor sector remained under pressure heading into the Wall Street open. Interest rate expectations shifted notably following this week's economic events, with markets reassessing the Fed's trajectory. Euro area economic data added complexity to the EUR/USD outlook, which has been consolidating near the 1.1610-1.1620 zone. Oil markets saw limited volatility despite the geopolitical headlines, constraining USD breakout potential. Traders are closely monitoring NFP forecast distributions, with consensus expectations varying widely. Near-term direction for major pairs will likely hinge on the jobs data, with a strong print potentially boosting USD across the board while a miss could accelerate euro gains.